To some extent this already has been tried in the US in the form of cheap mortgage credit to the poor. Thousands of dollars were given to people who defaulted and never paid back. Look where it got us…
To some extent this already has been tried in the US in the form of cheap mortgage credit to the poor. Thousands of dollars were given to people who defaulted and never paid back. Look where it got us…
Overall, your main flaw is that you're considering the economy an entirely static thing. But as the demand for basic goods increases, it creates new business opportunities for both incumbents and potential entrants into the market. Capital seeks out profits, and relatively more capital would flow into the provision of basic goods. That's what prevents the basic income from dissipating into worthlessness.
No-one is saying that you should. A theoretical BIG would be funded by the money that is currently spent on inefficient and mismanaged state welfare. It's money that is already being spent, used in a different way.
Blatantly untrue -- under basic income poor people will see their relative purchasing power increase, and rich people will see theirs decrease.
3) you will end up with inflation, because free money will create more demand, which in turn will result in smaller supply (relatively to demand) and higher prices
Or maybe supply will go up? You know we have an unemployment problem, right? More demand is exactly what America wants right now. It creates business and employment opportunities.
in the end these $1,000 after a couple of months will buy you only $500 worth of goods (end game is that these $1,000 will be worthless after some period)
Obviously basic income would be pegged to GDP, hence pegged to inflation. This is a non-argument.
And about pegging, if you say you increase the payout according to increasing inflation, then wow, you now have a hyperinflation (that's when prices go up 100% in a matter of days, each week).
Also, your economics is pants. Giving $1000 to everyone is going to make a lot more difference to someone eating out of dumpsters than it is to Bill Gates. And it isn't about rescuing people by giving them a lump sum and expecting that things will be fine, it is just about giving people enough time for reflection that more of them have a chance to sort their shit out. Life is hard and people are disorganised bastards, if we try and make it a bit easier for people we might get more done.
USA Inc. with every citizen as shareholder would work like this: I earn $100K/y, my neighbour just $0/y. I pay $20K in taxes, he pays none. We both get $12K/y from BIG. For me it's a dividend. For my neighbour it's free money. So what's my incentive to work? Screw this, I quit. Now, USA Inc. get's $0/y from both of us. For 4 months we still get the cash, from the surplus. But that runs out, and now we both get $0 and are jobless.
BIG will only work if there are more people who work than those who don't work. Making things easier for people never actually helped them. Those who succeeded had to go through hard work.
Your incentive to work is that you earn $100k instead of $12k. I certainly wouldn't quit my job if it means that much of an income hit. This is actually a real situation for me - I could quit my job tomorrow and get more than $12k in benefits, but I won't.
(I'm not agreeing or disagreeing with the premise, just brainstorming)
You'd lose a lot of people as a lifeguard.